According to Variety, the acquisition of Rdio, which is expected to file for bankruptcy, cost Pandora $75 million.
“We seek to be the definitive source for music discovery and enjoyment globally,” Pandora CEO Brian McAndrews said, according to Variety. “We plan to substantially broaden our subscription business.”
McAndrews also revealed that Pandora’s current goal is to eventually provide “radio, on-demand and live music.” Pandora currently offers personalized radio programs for its users.
“The acquisition of Rdio represents a significant shift for Pandora,” Variety reports. “The Oakland, Calif.-based service has long focused on a more radio-like approach to online music streaming, but has recently come under pressure from on-demand music streaming services like Spotify and Apple Music. Pandora’s stock got hammered after the company released weaker-than-expected earnings last month, with executives admitting that the launch of Apple’s music service may have had some effect on its audience numbers.”
In addition to acquiring the “technology and intellectual property” of Rdio, Pandora will also able to use the company’s trademark.